M/S. Gravita India Limited Vs the State of Andhra Pradesh

M/S. GRAVITA INDIA LIMITED, A COMPANY REGISTERED UNDER COMPANIES ACT, HAVING ITS BRANCH OFFICE AT SY NO.233-15 TO 233-30, TIRUTHANI ROAD, ANANTHAPURAM PANCHAYAT, NARASINGARAYANI PETTAI POST, CHITTOOR MANDAL EX DIST. REP BY ITS DEPUTY MANAGER MR. B. REDDEPPA CHETTY.

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...PETITIONER

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AND

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THE STATE OF ANDHRA PRADESH, , REP. BY ITS PRINCIPLE SECRETARY, ENERGY DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT.

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2THE SOUTHERN POWER DISTRIBUTION COMPANY OF ANDHRA PRADESH LIMITED, RENIGUNTA ROAD, TIRUPATI, CHITTOOR DISTRICT REP BY ITS CHAIRMAN ET MANAGING DIRECTOR.

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THE SOUTHERN POWER DISTRIBUTION, COMPANY OF ANDHRA PRADESH LIMITED, OP CIRCLE AT TIRUPATHI, CHITTOOR DISTRICT.

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus to declare the action of the lst respondent in issuing G.O.Ms.No.7 Energy (Power-III) Department dated

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08.04.2022 exorbitantly increasing the levy of electricity duty from Rs.0.06 per unit of Rs.1.00 per unit on the energy sales made to commercial and industrial consumers, in colorable exercise of the powers conferred under Sec.3(1) of the Andhra Pradesh Electricity Duty Act, 1939 as arbitrary, illegal, unjust, unfair, unreasonable excessive, violative of Art 14 Et 21 of the Constitution of India, contrary to the National Tariff Policy, 2016 contrary to the common order on Tariff for retail sale of Electricity during financial year 2022-2023 dt 30.03.2022 passed by the Andhra Pradesh Electricity Regulatory Commission and contrary to law and consequently set aside G.O.Ms.No.7 energy (PowerIII) Department Dt.08.04.2022 and to pass such

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IA NO: 1 OF 2023

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased be pleased to suspend the operations of G.O.Ms.No.7, energy (Power -III) Department Dt.08.04.2022 issued by the 1st respondent in so far as Writ petitioner's company- Gravita India Ltd, situated in Sy No.233-15 to 23330,Tiruthani Road, Ananthapuram Panchayat, Narasingarayani Pettai Post, Chittoor Mandal Et Dist. pending disposal of the writ petition and pass

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Counsel for the Petitioner:

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1.T C KRISHNAN

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Counsel for the Respondent(S):

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1.VENKATA RAMA RAO KOTA SC FOR APSPDCL

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2.GP FOR ENERGY

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3.V R REDDY KOVVURI(SC FOR APSPDCL)

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The Court made the following ORDER:

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Challenging the G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, the above writ petition has been filed.

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Today, when the matter is taken up for consideration, learned counsel appearing on either side would submit that the issue involved in this writ petition is covered by the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch.

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The Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025, observed as follows:

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“92. As can be seen from the above extract, this G.O. has been issued for permitting licensees to collect, from consumers, the Duty fixed under G.O.Ms.No.7. Since G.O.Ms.No.7, has been struck down, the question of granting sanction to collect Duty, fixed under G.O.Ms.No.7, would not arise. Accordingly, G.O.Ms.No.22 is also struck down. As this G.O. has been struck down, on this ground, this court is not going into the other contentions raised against this G.O.

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…

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For the aforesaid reasons, all the cases are disposed of in terms of the following order:

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The amendment to Section 3, by Act 23 of 2024, to the extent of granting power to the government to fix the rate of Duty between six paise to one rupee per unit is upheld.

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The amendment to Section 3, by Act 10 of 2021 and Act 23 of 2024, to the extent of granting power to the government to identify categories of consumers, for purposes of fixing the rate of tariff is set aside.

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The proviso, to Section 3, stipulating that, in the absence of the rate of duty notified by the state government for different consumer categories at any given time, a minimum duty of 6 paise (Rs. 0.06) per unit of energy shall be levied, shall remain unaffected.

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The amendments to Section 7, by Act 23 of 2024, are struck down.

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G.O.Ms.No.7, dated 08.04.2022 is struck down. However, the government is entitled to collect Duty at the rate of 6 paise per unit, throughout the period from the date when Act 10 of 2021 was published in the Gazette till such time as the rate of duty is modified, in accordance with law. Further, the exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, remains in force.

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G.O.Ms.No.22, dated 23.10.2024, is struck down. However, G.O.Ms.No.277, dated 09.12.1994, remains in force throughout the disputed period and the Licensees are permitted to recover Duty, at the rate of 6 paise per unit, from the consumers, subject to any exemption

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that may have been granted, or would be granted, under section 3A of the Duty Act.”

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Given the same, the Writ Petition is disposed of in terms of the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch. No order as to costs.

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The Registry is directed to annex the copy of the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch to this order.

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As a sequel, pending miscellaneous petitions, if any, shall stand closed.

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___________________________ JUSTICE SUBBA REDDY SATTI

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Dated: 04.07.2025 SNI

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THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI